“ 5thconsecutive quarter of record adjusted EBITDA. Third quarter net income increased to $1.6M. Nine month net income increased to $4.67M or $0.08 EPS.”
Vancouver, BC, June 28, 2016 – TIO Networks Corp. (TSX-V: TNC, “TIO”) today announced third quarter financial results for the period ended April 30, 2016.
Quarterly financial & business highlights (all figures in CA dollars):
- Quarterly Adjusted EBITDA increased 188% on a Year over Year (YoY) basis to $2.88M from $1M and increased sequentially on a quarter over quarter (QoQ) basis by 8.5% from Q2 2016
- Quarterly revenue increased YoY by 32.4% to $17.9M and QoQ by 9.6%
- Quarterly gross profit increased YoY by 38.1% to $8.9M and QoQ by 11.4%
- Quarterly net income increased to $1.6M or 2 cents eps compared to $24k on a YoY basis
- Quarterly gross margin increased to 49.6% from 47.6% on a YoY basis (previous quarter was 48.8%)
- Cash Flow from Operating activities before non-cash working capital items increased to $2,049,539 from $495,625 YoY and from $1,844,452 QoQ
- Processed approximately 14.9M transactions worth approx. $1.8B representing 11.9% YoY and 6.6% QoQ transaction growth
- Quarterly results included onetime costs of $500K which included 50% of the 3rd and final contingent payment related to the ChargeSmart acquisition and M&A costs related to the Softgate acquisition.
- On April 22, 2016, the company completed its acquisition of New Jersey based Softgate Systems Inc. Quarterly results included 8 days of Softgate which is equivalent to $1M in revenues.
The Company finished the period with $55,317,582 in cash and cash equivalents and restricted cash (including cash held to fulfill bill payment and money order obligations).
On February 1, the Company closed a private placement for gross proceeds of $5,125,282 to help fulfill closing cost obligations related to the acquisition of Softgate Systems Inc.
|Three months ended April 30||Nine months ended April 30|
|Revenue||$ 17,967,417||$ 13,568,328||$ 49,641,207||$ 48,560,049|
|Gross Profit||$ 8,919,622||$ 6,458,537||$ 24,771,662||$ 18,537,318|
|Adjusted EBITDA*||$ 2,880,000||$ 1,001,000||$ 7,542,000||$ 2,410,000|
|Cash Flow from operations before non-cash working capital items||$ 2,049,539||$ 495,625||$ 5,866,163||$ 2,073,198|
|Net Income (loss)||$ 1,605,009||$ 24,056||$ 4,670,237||$ (101,537)|
|Q3, 2016 sequential comparison to Q2, 2016||Quarter ended|
|Apr 30, 2016||Jan 31, 2016|
|Revenue||$ 17,967,417||$ 16,396,968|
|Gross Profit||$ 8,919,622||$ 8,008,085|
|Adjusted EBITDA*||$ 2,880,000||$ 2,653,000|
|Cash flow from operations||$ 2,049,539||$ 1,844,452|
|Net Income||$ 1,605,009||$ 1,661,631|
“This quarter represents the best results in our Company’s history including record results for the 5th consecutive quarter in terms of Adjusted EBITDA and cash flow generation,” said Hamed Shahbazi, Chairman and CEO of TIO Networks. “Our shared services strategy is proving effective in removing excess costs strengthening margins, cash flow and profitability. While the Softgate acquisition contributed only 8 days of revenue we are pleased to report our first 100-day integration plan is proceeding well and we look forward to reporting a full quarter of consolidated results in our Q4 earnings report. Beyond integration, our focus is growth momentum on the top and bottom line. It’s important to note that this past quarter’s results, we also grew revenues organically by 25% YoY and 3.4% QoQ when considering only non-Softgate revenues.”
A conference call to discuss the results will be held today at 2:00pm EST, 11am PST.
To participate in the call please dial 416-204-9269 in Toronto or Toll free, 1-800-499-4035 and request the TIO Conference, conference ID 2152443.
About TIO Networks Corp
TIO is a cloud-based multi-channel bill payment processing and receivables management company, serving the largest telecom, wireless, cable, and utility bill issuers in North America. TIO integrates with the back office of billing systems to accept, validate, and accept payments outside of the traditional bank channel, via self-service kiosk, retail walk-in, mobile, and web solutions. With more than 69,000 endpoints in its processing network, TIO symbolizes fast, convenient, and secure access to expedited bill payment services.
Richard Cheung, CFO – TIO Networks
604.298.4636, Ext. 265
John Lewis, Business Development – TIO Networks
The TSX Venture Exchange has not reviewed this news release and does not accept responsibility for its adequacy and accuracy.
This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. Potentially, many factors could cause our actual results to vary materially from those described herein as intended, planned, anticipated or expected. TIO Networks Corp. does not intend and does not assume any obligation to update these forward-looking statements.
* EBITDA is a non-IFRS measure – earnings before interest, tax, depreciation and amortization. Adjusted EBITDA is EBITDA plus stock-based compensation, non-recurring transaction and restructuring expenses. EBITDA is not a defined term under IFRS nor does it have a standard, agreed upon meaning. Accordingly, the Company’s EBITDA may not be directly comparable to EBITDA reported by other issuers. Management had determined EBITDA is a useful supplemental measure in evaluating the Company’s performance as it provides investors with an indication of cash available for debt service, working capital needs and capital expenditures. This non-IFRS measure is intended to provide additional information on the Company’s performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.